The show floor was busy on Saturday, with many dealers and vendors seeing the highest attendance in a number of years
It was unseasonably chilly and damp in New Orleans, as the 2014 NADA Convention and Expo got underway but the show floor was bustling, almost the second the doors opened.
The convention is the largest annual event of its kind for auto dealers, and the National Automobile Dealers Association kicked off on Saturday, January 25 with a host of seminars and press conferences aimed at bringing dealers up to speed with what happened in 2013 — and what they can expect for 2014.
Steven Szakaly, the NADA’s Chief Economist told the automotive press that he expects the key factors of rising home values, residential construction and employment to continue to boost automotive sales. Szakaly predicted consumers would purchase or lease 16.4 million new cars and light trucks in the U.S. this year — representing a 5.8 per cent increase from 2013. “These factors are also critical to maintaining the pace of auto sales growth, which has been an integral part of the economic recovery,” said Szakaly.
Jonathan Banks, Executive Automotive Analyst, NADA Used Car Guide and Steven Szakaly, NADA’s Chief Economist speak to the automotive press at the NADA Convention and Expo in New Orleans
ECONOMIC UPSWING
He said consumers will be even better off in 2014 and this could help spur sales. “Employment is improving, debt has been reduced and home prices across all regions of the country will remain stable or will rise, creating a positive wealth effect.”
He said last year’s 15.5 million sales represented the fifth straight year of recovery from the global economic meltdown. “There is considerable upside potential in 2014 as economic activity is expected to increase as the year progresses.”
During a question and answer period with the press, Szakaly said that dealers are profitable, and the economic meltdown that saw many stores close their doors has had an impact on profitability. “We are left with a healthier pool of dealers who do more with less,” he says. “We have seen an overall automotive market that is more profitable.”
He also said that OEMs have a big role to play and cautioned against them getting involved in “market share” wars that focus more on production volumes instead of profitability.“If the industry is profitable, then I think dealers will be profitable,” says Szakaly.
